(Corrects to restore dropped word in first paragraph)
* MSCI Asia ex-Japan +0.18%; off intraday highs
* European shares seen continuing global rally
* Nikkei touches 15-month highs
* China 2019, Q4 GDP growth in line with expectations
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Andrew Galbraith
SHANGHAI, Jan 17 (Reuters) - Asian shares rose on Friday
after data in China showed pressure on the world's second
biggest economy may be starting to diminish.
The news along with easing trade tensions with the United
States underpinned riskier assets, even as some markets took a
breather in late afternoon trade.
European bourses were expected to extend the global rally
after Wall Street posted more records. In early European trades,
pan-region Euro Stoxx 50 futures STXEc1 were up 0.4%, German
DAX futures FDXc1 gained 0.54% and FTSE futures FFIc1 added
0.28%.
China's economy grew 6.0% in the fourth quarter of 2019 from
a year earlier, and 2019 growth of 6.1% was the slowest in 29
years, held back by anaemic domestic demand and the damaging
trade war with the United States.
The data largely reinforced recent signs of an improvement
in Chinese business confidence as trade tensions eased, with
Beijing and Washington sealing an initial deal on Wednesday to
defuse their damaging tariff war.
Beijing is widely expected to introduce more stimulus
measures in 2020 amid sluggish investment and demand.
"This is all good news and positive for the China story. All
the data coming out, from industrial production, fixed asset to
retail sales, they are all showing signs of bottoming out as the
trade cycle bottoms out," said Daniel Gerard, senior multi-asset
strategist at State Street Global Markets in Hong Kong.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was up 0.18% in afternoon trade, trimming
earlier gains of as much as 0.4%.
China's blue-chip CSI300 index .CSI300 ended 0.14% higher,
down from an earlier rise of as much as 0.67%. The index has
rallied more than 8.5% since the beginning of December, fuelled
by hopes for improved trade relations with the United States.
Australian shares .AXJO added 0.32% to a fifth consecutive
record high close, and Seoul's KOSPI .KS11 rose 0.11%. Japan's
Nikkei .N225 finished up 0.45% after reaching 15-month highs
earlier in the session.
MSCI's global share index .MIWD00000PUS touched record
highs and was last up 0.05%.
Analysts say global equities may find it difficult to
maintain momentum from their recent rally as optimism over the
U.S.-China trade truce gives way to uncertainty over the next
steps in trade talks.
While a Phase 1 deal signed by China and the United States
on Wednesday is seen as defusing the 18-month row that has hit
global growth, experts say it is unlikely to provide much balm
for broader frictions between the two countries. Most of the
tariffs imposed during the dispute remain in place and a number
of thorny issues that sparked the conflict are still unresolved.
"The challenge from here is how long we can maintain these
improvements," said Steven Daghlian, market analyst at CommSec
in Sydney.
"Speaking of the Aussie market specifically, a 6% gain in
two weeks is obviously a massive challenge to replicate in the
tail end of the month. You don't really see 10, 11, 12%
improvements over the course of a month without any gigantic
positive catalysts."
In the United States on Thursday, a combination of upbeat
earnings from Morgan Stanley, rising U.S. retail sales, a strong
labour market and robust manufacturing data helped to lift Wall
Street to record highs. .N
The Phase 1 deal and the U.S. Senate's approval of a revamp
to the 26-year-old North American Free Trade Agreement also
boosted investor spirits. The Dow Jones Industrial Average .DJI rose 0.92% to
29,297.64, the S&P 500 .SPX gained 0.84% to 3,316.81 and the
Nasdaq Composite .IXIC added 1.06% to 9,357.13.
The U.S. data supported the dollar, which held steady on
Friday. The greenback hit eight-month highs against the yen
JPY= before trimming its advance to rise 0.09% to 110.24. The
euro was up 0.04% to buy $1.1140. EUR=
The dollar index .DXY , which tracks the greenback against
a basket of six major rivals, was lower at 97.292.
The rally in equities was mirrored in U.S. benchmark 10-year
Treasury notes, which saw yields rise to 1.8285% from their
close on Thursday at 1.809%. Yields rise as prices fall.
Commodity markets were quiet, with Brent crude futures
LCOc1 falling 4 cents to $64.58 per barrel. U.S. West Texas
Intermediate crude futures CLc1 fell 6 cents to $58.46 per
barrel.
Gold was 0.12% higher on the spot market XAU= at $1,554.38
per ounce. /GOL
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ASX200 historical performance https://tmsnrt.rs/370OfAB
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